Debate on China's market economy status, during the EP plenary session (09-12 May 2016) in Strasbourg. Statement by Jeanine HENNIS-PLASSCHAERT, Dutch Minister of Defence, Vytenis ANDRIUKAITIS, Member of the EC in charge of Health and Food Safety, Daniel CASPARY (EPP, DE), Giovanni PITTELLA (S&amp;D, IT), Emma McCLARKIN (ECR, UK), Marietje SCHAAKE (ALDE, NL) and Helmut SCHOLZ (GUE/NGL, DE)

China's market economy status: extracts from the debate

SOUNDBITE (English), Jeanine HENNIS-PLASSCHAERT, Dutch Minister of Defence, The question of granting market economy status to China is one of unprecedented political significance for the EU given its wide-ranging implications. Not only will it affect EU trade but, deriving from it, jobs and growth as well. Obviously the EU must comply with its obligations under WTO law, but it must also balance the legitimate concerns of European producers, consumers and users, while acknowledging China's position as a strategic trading partner.

SOUNDBITE (English), Jeanine HENNIS-PLASSCHAERT, Dutch Minister of Defence, This might be the moment to reflect on how to improve our trade defence mechanisms with a view to better tackle unfair tarde practices and to ensuring a global level playing field for Eu companies.

SOUNDBITE (English), Vytenis ANDRIUKAITIS, Member of the EC in charge of Health and Food Safety, It is undeniable that China is not a market economy by any standards. And we know that that is not the question here. We are working very hard to find a solution which is not easy. Clearly, our trade defence instruments need to be efficient and effective independently of the expiry of certain provisions of China's accession protocol to the WTO.

SOUNDBITE (English), Vytenis ANDRIUKAITIS, Member of the EC in charge of Health and Food Safety, Change the anti-dumping methodology by introducing a new approach which would maintain a strong trade defence system in the EU, while giving effect to the expiry of certain provisions of the China accession protocol.This approach would help ensure that the dumping margins calculated would, for the main part, reflect the ongoing distortions in the Chinese economy more accurately. In this regard, the EU would follow the example of the US.

SOUNDBITE (German), Daniel CASPARY (EPP, DE), Please make sure that there's an appropriate appraisal of the impact assessment and the public consultation. And give us a proposal that will really help us make progress. We in the EPP are not fighting for symbols, the question of market economy status is really of secondary importance. We see that it is something that is very important, nevertheless, we think that jobs are important. European industry is important. Please act.

SOUNDBITE (Italian), Giovanni PITTELLA (S&amp;D, IT), Either China fulfils the five criteria that determine any market economy, or China cannot expect to have that market economy status recognised. I in no way wish to refute friendship between China and the EU, which is on a solid footing now but if we would just be press ahead we would be carrying out the suicide of European industry.

SOUNDBITE (English), Emma McCLARKIN (ECR, UK), These market distorting actions result in injury to EU industry and having tools to combat them guarantees that the EU companies can continue to operate on a global level playing field. The clock is ticking towards the December deadline, and we await the Commission's proposal to ensure future trade is fair.

SOUNDBITE (English), Marietje SCHAAKE (ALDE, NL), This debate is not, contrary to what the name may suggest, a debate on whether or not China's economy operates according to free trade and fair competition laws and principles. We share the concerns about state interfere and overcapacity and the lack of transparency and reliable indicators to even be able to predictably verify verify whether prices are the result of supply and demand or whether they are kept artificially low. What we do know is that wages and environmental standards are lower in China than they are in the EU. Actually, importers in the EU benefit from this aspect of globalisation and it can also lead to lower prices for consumers.

SOUNDBITE (German), Helmut SCHOLZ (GUE/NGL, DE), The Chinese market is compensating for the lack of plans in industry for Europe, that's not been visible in recent years. The debate on market economy status and the choice of weapons in a trade war is a wrong head, it is not a solution for jobs. The EU and China have to learn to work together. We need to correct the way things have gone awry, both the EU and China, and construct solutions within the framework of the WTO.

China's market economy status: extracts from the debate

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